Which of the Following Are Implicit Costs for a Typical

question 249

Multiple Choice

Which of the following are implicit costs for a typical firm?

• A) opportunity costs of capital owned and used by the firm
• B) the cost of labour hired by the firm
• C) utilities cost
• D) a business licensing fee

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Definitions:

Factory Overhead Cost

Indirect costs associated with manufacturing, such as maintenance, utilities, and salaries of supervisors, not directly tied to specific product units.

Construction Contractor

A business or individual that agrees to construct a building or to manage a construction project in accordance with specified parameters.

Performance Report

A document that evaluates the performance of a project, department, or employee against set goals or benchmarks.

Employee Downtime

Periods when employees are not actively working due to breaks, equipment failure, or lack of demand.